Ripple Pens Official Response to SEC’s Illegal XRP Sale Allegation

Ripple Pens Official Response to SEC’s Illegal XRP Sale Allegation

Ripple has finally issued an official retort to the allegations mounted against it by the US Securities and Exchange Commission (SEC) over the alleged illegal sale of XRP.

According to an official document dated March 4 in the United States District Court for the Southern District of New York, Ripple Labs has vehemently denied the allegations put forth by the SEC that the company carried out an illegal sale of its native cryptocurrency, XRP, to unsuspecting investors. The document noted that:

“Ripple denies it engaged in any offering of securities; denies the inaccurate characterization of the legal advice Ripple received regarding XRP; and denies that it engaged in a single ‘offering’ of XRP.”

Ripple asserted that XRP did not fit into the specifications for traditional securities regulations and noted that its original sale of the cryptocurrency did not contain the SEC’s classification of an “offering.”

The San Francisco-based company also argued that if XRP was indeed a security, it would thwart its usefulness as a payment solution:

“Before this case, no securities regulator in the world has claimed that transactions in XRP must be registered as securities, and for good reason. The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as a security is to impair its main utility… Treating XRP as a security… would subject thousands of exchanges, market-makers, and other actors in the gigantic virtual currency market to lengthy, complex and costly regulatory requirements never intended to govern virtual currencies.”

XRPUSD – Hourly Chart

Key XRP Levels to Watch — March 10
Ripple (XRP) has been steadily rising since the beginning of March but is currently having a tough time breaking above the $0.5000 psychological resistance level. The cryptocurrency recently fell below our ascending trendline some hours ago but got met by dip-buyers at the $0.4545 support, who sent the price back above $0.4700.

That said, the seventh-largest cryptocurrency has to climb back above the trendline to continue its journey to the highly-coveted $0.5000 level. However, given the current absence of trading volume around the XRP, we could see the emergence of a consolidation range around $0.4600 in the coming hours and days.

Meanwhile, our key resistance levels are at $0.4800, $0.5000, and $0.5400. While our key support levels are at $0.4600, $0.4545, and $0.4400.

Total Market Capitalization: $1.69 trillion

XRP Market Capitalization: $21.2 billion

XRP Dominance: 1.25%

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.